Top reasons for Walworth lease extension

Main reasons to commence your Walworth lease extension today:

Increase your lease and increase your Walworth property value

Unfortunately that a Walworth residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Walworth property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Walworth will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.

Walworth property with a lease extension has roughly the same value as a freehold

Leasehold properties in Walworth with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Many banks and building societies require a lengthy amount of time remaining on a leasehold property before they will consider lending on it. Regardless of whether you need a mortgage, you should be mindful that it is probable that someone intending to buy your property in the future might well do, so where they are unable to get a mortgage, then the market price of your property could suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to accept

Why use us for your lease extension in Walworth?

The conveyancing solicitors that we work with procure Walworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Walworth Lease Extension Example Cases:

Jacob, Walworth, South East London,

Jacob was the the leasehold proprietor of a conversion flat in Walworth on the market with a lease of just over 72 years left. Jacob informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.

Walworth case:

Last Christmas we were e-mailed by Dr M White , who moved into a first floor flat in Walworth in June 1999. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Walworth with 100 year plus lease were in the region of £261,600. The average amount of ground rent was £60 invoiced monthly. The lease came to a finish on 13 October 2078. Having 52 years unexpired we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including expenses.